Govt, PBC discuss SOEs restructuring, privatisation

The government and the Pakistan Business Council (PBC) on Tuesday discussed restructuring state-owned enterprises (SOEs) as part of broader efforts to improve efficiency, reduce the state’s commercial footprint and attract greater private-sector participation.

Advisor to the Finance Minister, Khurram Schehzad, held a meeting with newly appointed Chairman of the PBC, Ziad Bashir, and Chief Executive Officer, Javed Kureishi, at the Finance Division to discuss measures aimed at promoting investment, strengthening private-sector participation, and advancing the government’s broader structural reform agenda.

The meeting provided an opportunity to discuss key areas of economic reform, the Finance Division said.

The participants discussed the proposed privatisation of power distribution companies (DISCOs), banks, and airports, with emphasis on improving efficiency, attracting investment, and enhancing service delivery through greater private-sector participation.

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The participants also discussed opportunities for bringing major public-sector entities to the capital markets through initial public offerings (IPOs), including State Life Insurance Corporation (SLIC).

It was noted that greater participation of private and institutional investors can support improved corporate governance, transparency, operational efficiency, and access to capital, while contributing to the government’s objective of encouraging market-led economic activity.

The PBC leadership expressed support for the government’s rightsizing agenda and emphasised the importance of creating a leaner, more efficient and focused public sector.

PBC also agreed to share its detailed inputs and recommendations on privatisation, SOE restructuring, rightsizing, and other areas where greater private-sector participation can contribute to economic efficiency and investment-led growth.

The meeting also covered tax rationalisation and the development of a medium-term tax policy framework.

The participants emphasised the importance of a predictable, transparent, and competitive tax regime that supports investment, business expansion, and long-term economic activity. Inputs and recommendations from the business community will be shared with the government to inform the ongoing medium-term tax policy discussions.

The PBC leadership also appreciated and supported the measures introduced in the Federal Budget FY27, particularly the policy shift from a narrow focus on increasing the tax burden towards broadening the tax base and economic activity.

PBC welcomed the incentives provided to the private sector and businesses, particularly measures aimed at supporting exporters, enhancing competitiveness, reducing the cost of doing business, and encouraging investment and expansion.

Schehzad appreciated the PBC’s engagement and emphasised the importance of continued consultation with the business community in shaping economic policies and reforms. He noted that constructive government-business dialogue is essential for building investor confidence, improving the business environment, and developing practical and sustainable reform measures.